Grumpy
10-09-2008, 09:00 AM
Firm's report suggests slowdown is spreading far beyond US borders
http://cache.boston.com/resize/bonzai-fba/Globe_Photo/2008/10/08/1223518683_3778/300h.jpgUS carriers are leading a global cutback on flying in the fourth quarter, OAG reported, beset by losses from high fuel prices and slowing travel demand. (Brian McDermott/associated press
DALLAS - Airlines worldwide will offer 6 percent fewer flights this quarter, led by declines in the United States, according to an analysis by aviation data company OAG.
The 451,000-flight reduction from a year earlier shows the effect of the economic slowdown spreading from the United States to Europe and Asia, the company said in a statement yesterday.
US carriers have been paring capacity to help end losses from high fuel prices and slowing travel demand.
"With economic problems now impacting both Europe and Asia, this picture could change quickly as airlines are extremely vulnerable and quick to react to economic downturns and subsequent shifts in market demand," Steve Casley, OAG's chief operating officer, said in a statement.
The United States accountsfor 59 percent of the flight reductions this quarter, OAG said. European carriers have deepened cuts to 5 percent for routes within the region, from a 2.7 percent decline forecast by the company in August.
Seating capacity for Europe will drop 5.6 percent, double the previous forecast of 2.8 percent, the company said.
Capacity will decline 2.9 percent on trans-Atlantic routes and 3.1 percent for trans-Pacific service, OAG said.
In August, the company had forecast increases of 2 percent for each.
"This is all the more remarkable when you consider that airlines have a tendency to deploy their assets from domestic services to long-haul international markets in an economic downturn," Casley said.
A 5 percent drop in global seating capacity narrowed from OAG's August forecast of a 7 percent decline, based on an improved Asian market.
Still, Asian airlines will fly 15.3 million, or 6.5 percent, fewer seats in the quarter than a year earlier, "a staggering figure" from what has been a growth region for years, OAG said.
US airlines will cut seat capacity by 9 percent and the number of domestic flights by 11 percent, the company said.
http://cache.boston.com/resize/bonzai-fba/Globe_Photo/2008/10/08/1223518683_3778/300h.jpgUS carriers are leading a global cutback on flying in the fourth quarter, OAG reported, beset by losses from high fuel prices and slowing travel demand. (Brian McDermott/associated press
DALLAS - Airlines worldwide will offer 6 percent fewer flights this quarter, led by declines in the United States, according to an analysis by aviation data company OAG.
The 451,000-flight reduction from a year earlier shows the effect of the economic slowdown spreading from the United States to Europe and Asia, the company said in a statement yesterday.
US carriers have been paring capacity to help end losses from high fuel prices and slowing travel demand.
"With economic problems now impacting both Europe and Asia, this picture could change quickly as airlines are extremely vulnerable and quick to react to economic downturns and subsequent shifts in market demand," Steve Casley, OAG's chief operating officer, said in a statement.
The United States accountsfor 59 percent of the flight reductions this quarter, OAG said. European carriers have deepened cuts to 5 percent for routes within the region, from a 2.7 percent decline forecast by the company in August.
Seating capacity for Europe will drop 5.6 percent, double the previous forecast of 2.8 percent, the company said.
Capacity will decline 2.9 percent on trans-Atlantic routes and 3.1 percent for trans-Pacific service, OAG said.
In August, the company had forecast increases of 2 percent for each.
"This is all the more remarkable when you consider that airlines have a tendency to deploy their assets from domestic services to long-haul international markets in an economic downturn," Casley said.
A 5 percent drop in global seating capacity narrowed from OAG's August forecast of a 7 percent decline, based on an improved Asian market.
Still, Asian airlines will fly 15.3 million, or 6.5 percent, fewer seats in the quarter than a year earlier, "a staggering figure" from what has been a growth region for years, OAG said.
US airlines will cut seat capacity by 9 percent and the number of domestic flights by 11 percent, the company said.